Still no resolution on fuel price, says energy department

Minister in the Presidency Jeff Radebe during the Youth Entrepreneurship Awards at the Southern Sun on December 05, 2017 in Pretoria, South Africa. The awards, also known as Step Up a Start Up, are the culmination of a five-month month entrepreneurship development programme, where nine finalists who have come up with the most innovative social and environmental business models were chosen.
Photo: Gallo Images / Sunday Times / John Liebenberg.

Government’s hands are tied when it comes to the fuel price according to energy minister Jeff Radebe.

He was briefing members of parliament on the high fuel price and its effects on South Africans.

Radebe says the fuel price, including the R1,93c for Road Accident Fund (RAF) and R3,37c for the fuel levy are the reason fuel in South Africa costs more than in neighbouring countries.

He says the high fuel price is mostly influenced by international factors. But ultimately the global factors affecting the price of oil are unavoidable.

He cited the levels of international crude oil prices, the levels of international refined petroleum products, the levels of the rand-dollar exchange rate as some of the reasons for the high petrol price.

Speaking on POWER Breakfast, Energy department’s deputy director-general Tseliso Maqubela says decreasing the fuel levy is currently not on the table of discussion.

“We are working on a broad range of intervention together with the national treasury. One area we believe we should not be looking at, at this stage, is the much talked about fuel levy.

“We are of the view that it’s one of the most efficient ways of raising revenue for road maintenance as well as well as operation cost for our road,” Maqubela told hosts Bob Mabena and Thabo Mdluli.

During Radebe’s appearance, parliamentarians believed the government is not serious about tackling the issue of the high fuel prices. They believe RAF can be relaxed to ease the burden on South Africans.

Radebe says currently government is pursuing discussions to import oil from other African countries apart from Angola and Nigeria.